By Emmanuel T. Erediano
[email protected]
Variety News Staff
THE Marianas Beach Resort has met some of its obligations to the CNMI government, Department of Public Lands Secretary Sixto Igisomar told the Senate Committee on Resources, Economic Development and Workforce during a meeting Tuesday.
In particular, Igisomar said MB Capital LLC, which owns the Marianas Beach Resort in Garapan, “has cleared off” the $192,143.56 outstanding balance for the annual base rent and the $12,668.12 in “additional rent” pursuant to Article 5(b) of the lease agreement, which requires the lessee to pay a percentage of gross receipts from business activities on the hotel premises in addition to the base rent.
MB Capital LLC took over the land lease contract from Saipan Portopia Corporation, the company that operated the Hyatt, which shut down in June 2024.
Present at the meeting were committee chair and Senate Vice President Corina Magofna, Senate Floor Leader Donald Manglona, Sen. Paul Manglona, and Sen. Ronnie Calvo.
The committee pressed Igisomar for an update on the hotel operator’s response to a notice of default and a notice of violation issued by DPL on Aug. 18, 2025.
Besides the failure to pay the base and additional rent, DPL’s notice cited MB Capital for not depositing the additional security deposit, which should equal 5% of the $45 million construction/renovation cost, or 5% of the cost of each phase of construction.
Igisomar told the committee that MB Capital is “fully up to date” on the base rent and had also “cleared off” its arrears on additional rent by the end of 2025.
Regarding the security deposit for the hotel’s construction and renovation, Igisomar said the matter is “still in ongoing discussion” with MB Capital. Because the discussion involves “compliance strategy,” he added, commenting further “might compromise our leverage.” He assured the senators, however, “we are working on it.”
Sen. Donald Manglona emphasized that MB Capital arrived when the CNMI economy was struggling. “The CNMI government always helps investors, especially hotel investors like MB Capital. But when investors come at a time of economic difficulty and make promises, we have to hold them accountable,” he said.
He noted that because of the poor economic situation, the Commonwealth provided investors with “extra good conditions” on public lease terms, particularly on base rent, which made the hotel operator’s noncompliance a concern.
Sen. Ronnie Calvo expressed continued support for the ongoing discussions between DPL and the investor. “In these challenging times, I can only hope for the best terms and conditions on the lease as the discussion moves forward,” he said.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
